How to Start a Successful Bookkeeping Business: 15 Steps

bookkeeping business

Do this by opening a business account, putting some money in it as an owner’s investment, and using it to pay all expenses related to your business. To move forward with your real estate bookkeeping, you need a business plan. Of course, becoming a competent and proficient bookkeeper still takes time and money. And although certification is optional, it’s a good idea to get certified since it lends credibility to your business. Bookkeeping is one of the most lucrative businesses to start right now!

Your costs will increase considerably if you intend to hire an employee right away, but otherwise, you can expect to be up and running for around $1,500 to $2,000. Work on your target market at the same time as your niche and UVP. Your UVP should be informed by both your competitor research, your target client’s main needs, and your unique set of hard and soft skills. See our guide on How Much Bookkeepers Charge for an up-to-date review of bookkeeping rates by state. Naming your business can be both a fun and stressful exercise. Your name must convey your brand since that is what a potential customer will see before they sit down with you for that initial consultation.

Rinse and Repeat – How to Start a Bookkeeping Business

Fees vary from a few dollars to a percentage of revenue, depending on your business location. You should consider the licensing fees when deciding where to locate your virtual bookkeeping business. If you ever want to get a bank loan for your business, you’ll probably need a more formal business plan. For now, the important thing is to walk yourself through the steps you’ll need to take to be successful. Registering your business and/or business name is an important step. The cost can range from free to several hundred dollars, depending on your state and the type of business structure you choose.

Next, showcases your core offerings that were created in Chapter 2. 1) Outline some benefits that small businesses can expect from your solution. Feel free to add and/or remove pages as you see fit if you think it will help you find clients.

Steps to Starting Your Own Bookkeeping Business

Building your knowledge and skills by working for an accounting or bookkeeping firm can prepare you to branch out on your own. It’s especially useful to become proficient with accounting and bookkeeping basics such as double-entry accounting, general ledger preparation, and how to classify and record financial transactions. Simply put, a bookkeeping business maintains the daily finances of its clients’ companies. This may include payroll, paying and collecting debts, monthly reconciliation of bank accounts, creating financial statements and reports, and issuing customer invoices. In addition, a bookkeeper is responsible for checking financial reports and figures for accuracy. The small business accounting market consists of virtually every small business in the United States.

Whether you create your website yourself or hire a web developer, you’ll likely need to determine what you want on your website and factor that into your startup costs. Every core offering will contain professional services and accounting work. Virtual businesses sometimes forget about networking, but several online platforms help businesses to meet and grow virtually. To preserve your time for expanding your business, think about how to outsource tasks to other team members.

Interview Template and Guide for Evaluating Responses

Lastly, part of this process is picking a business name, which you should do with care. You’ll be using the name for years, so be sure it’s a professional and accurate description of your work. Ask clients to leave testimonials for you on social media and include put testimonials on your website. This is a situation where it might be worth paying an attorney for legal advice and to help draw up the paperwork needed to register as an LLC if you decide to go that route. Errors and omissions insurance is a good investment regardless, but it’s especially important if you choose to work as a sole proprietor.

  • She has a couple of clients who are charged $500 a month, a couple at $400, and a few at $250.
  • If they want to use a fictitious name (e.g., Precision Bookkeeping Services), however, they must file a DBA or equivalent application.
  • In addition to explaining the type of business you operate, the Company Analysis section of your business plan needs to provide background on the business.
  • Unlike some related career fields, such as accounting, you don’t need a specific degree to be a bookkeeper.
  • Your cash flow statement will help determine how much money you need to start or grow your business and make sure you never run out of money.
  • Examples of tools that can help include Google Drive, G Suite, Hubdoc, Expensify, Wave, Shoeboxed, OneDrive, and Dropbox.

I know that you want to make sure you get a return on this investment right away. This lesson will show you how to get started finding clients without so much “putting yourself out there.” It’s how I started, and now most of my clients come to me as referrals. In the interest of shortening the time it takes to get your business started, you also get thesebonus shortcuts… With a relatively low tax burden and low cost of labor, Alabama is the 14th fastest-growing state in the United States.